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ReturnChina ready to settle silk row with India
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PublishDate：
2005-07-26 09:16:00
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NEW DELHI: Beijing has offered a deal to New Delhi for resolving disputes between the two countries over silk. China has expressed its willingness to transfer the technology for producing superior quality silk, provided India withdraws anti-dumping cases against Chinese silk imports worth $1.5b.
Transfer of technology may open up joint ventures (JVs) between Indian and Chinese firms and resolve the issue of dumping permanently. Senior Chinese officials have recently met several top officials in New Delhi, explaining their view points. “The dumping allegation against us is completely false. We have a better technology to produce good quality silk at relatively low cost. We are even willing to help India in improving its silk production, through technology transfer,” Cheng Yongru, division director, Bureau of Fair Trade for Imports & Exports (BOFT) in China’s commerce ministry told ET.
India is one of the major markets for Chinese silk exports. “Indians use Chinese silk fabric to make value-added garments for both domestic consumption as well as exports. Anti-dumping duty on Chinese silk will harm India’s own silk exports,” largest silk producer in China, Zhejiang Cathaya International vice general manager Lu Xing said. In May this year, India had initiated an anti-dumping investigation against Chinese silk fabric imports. This is the second anti-dumping case against Chinese silk. Earlier, an anti-dumping duty was imposed on the Chinese raw silk.
According to Yongru, the Chinese delegation was in the country to dispel doubts. “We are also visiting Bangalore. We will meet Central Silk Board and other petitioners who have filed the dumping case against us. We will discuss the issue with them and also offer our help in strengthening their industry through deploying better technology in raw silk production,” he said.
According to Xiang, India needs to change its silk producing technology right at the cocoon stage. “India prefer to dry cocoon in the sun. This leaves some moisture, which is not good for quality silk. Similarly India reeling technique is very old,” he said.
Silk exporters also fear that any anti-dumping duty on Chinese silk will encourage its smuggling. “Chinese silk is required to produce good quality products, mainly for exports. Any anti-dumping duty will hurt our own exports,” an official of the India Silk Export Promotion Council said. India exports silk products worth Rs 3,000 crore, besides having a huge domestic market.
The Directorate General of Anti Dumping & Allied Duties has initiated an investigation against China on an application filed by Central Silk Board, along with Mysore Powerloom Silk Manufacturers (Bangalore), Karnataka Weavers Federation (Bangalore), Silk Trade Association (Varanasi) and Pure Silk Weavers Association (Surat).
